comp_exam_a - Comprehensive Examination A A-1 COMPREHENSIVE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Comprehensive Examination A A-1 COMPREHENSIVE EXAMINATION A (Chapters 1 - 5) Approximate Problem Topic Points Minutes A - I Multiple Choice . ........................................... 20 10 A - II Matching . .................................................... 12 8 A - III Adjusting Entries . ........................................ 15 20 A - IV Ratios . ........................................................ 12 15 A - V Journal Entries. ............................................ 18 12 A - VI Income Statement for a Merchandising Company . .................................................... 14 10 A - VII Assumptions, Principles, and Constraints . ... 9 10 100 85 Checking Work . .......................................... 5 90
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Test Bank for Financial Accounting: Tools for Business Decision Making, Fourth Edition A-2 Problem A - I — Multiple Choice (20 points) Circle the one best answer. 1. The primary accounting standard-setting body in the United States is the a. Securities and Exchange Commission. b. Internal Revenue Service. c. Financial Accounting Standards Board. d. Corporate Board of Directors. 2. An increase in a revenue a. decreases net income. b. decreases assets. c. increases liabilities. d. increases stockholders’ equity. 3. A corporation with total stockholders’ equity of $75,000 paid a $12,000 business debt. As a result of this transaction, total stockholders’ equity a. did not change. b. increased by $12,000. c. decreased by $12,000. d. increased to $75,000. 4. The left side of an account is always a. the debit side. b. the credit side. c. the balance of that account. d. carried forward to the next accounting period. 5. Posting is the process of a. preparing a chart of accounts. b. adding a column of figures. c. transferring journal entries to ledger accounts. d. recording entries in a journal. 6. The purpose of recording depreciation on productive assets is to a. reflect the decline in the market value of the assets each period. b. reduce income when the company has an exceptionally profitable year. c. be in conformity with the revenue recognition principle. d. allocate the original cost of a productive asset to expense over its useful life. 7. Tanner Company debited Prepaid Insurance for $600 on May 1, 2007, for a one-year fire insurance policy. If the company prepares monthly financial statements, failure to make an adjusting entry on May 31, for the amount of insurance that has expired would cause a. assets to be overstated by $600 and expenses to be understated by $600. b. expenses to be overstated by $50 and assets to be understated by $50. c. assets to be overstated by $50 and expenses to be understated by $50. d. expenses to be overstated by $600 and assets to be understated by $600. 8.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/05/2009 for the course ACCT 2102 taught by Professor Constable,d during the Fall '08 term at Georgia Perimeter.

Page1 / 10

comp_exam_a - Comprehensive Examination A A-1 COMPREHENSIVE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online